Results of Master Builders’ latest sentiment survey saw Victorian builders’ belief in their industry’s future fall for the second consecutive quarter.

Our Industry Expectations Index recorded 48.8.points for the March quarter, dipping below the five year average for the first time since the September 2013 quarter, and down 7.8 points on December.

Confidence in the industry was most likely shaken by the Victorian Government fulfilling their commitment to tear-up contracts for the multi-billion dollar East West Link construction project.

“Australian Bureau of Statistics figures for the March quarter showed that whilst the number of new homes approved in Victoria continued to trend higher, non-residential building fell for the sixth consecutive month and was 2.9 per cent lower than in February. Cancelling the East West Link project has only exacerbated this” Master Builders Chief Executive Officer Radley de Silva said.

It is hoped that with millions of dollars committed to infrastructure, school and hospital building projects in the May Budget, we will see expectations improve in the near term as more work comes on line.

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The drop in builders’ expectations for the industry has also led to them feeling less secure about their own business prospects.

Our Business Expectations Index has fallen from 62.2 points in the December quarter to 60.6 points in March, but remains above the five year average.

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Furthermore, significantly fewer Victorian builders are reporting six months or more worth of work on their books than in the previous quarter.

Some 26.6 per cent of builders advised they have six months or more work in March, compared to 38.6 per cent just three months earlier.

The proportion of builders with under a month’s worth of works planned has increased from 9.4 per cent in December to 15.1 per cent today.

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Other results from Master Builders’ industry sentiment survey:

  • Victorian builders are experiencing difficulties finding suitable project managers, site managers and foremen/supervisors for construction and building projects.
  • There has also been a sizeable jump in the difficulty for builders to find concretors, bricklayers and office staff.

Click here to download the full results of the survey.